wanyina wrote:My potfolio planner at D&B mentioned to me about the merger of CFC with an insurance company.Also she said that the deal will be 1 share free in every 2 held.Sound like a deal though i dont have details to support the claim.......Any one with any information.......>???
First it is NOT a merger. It is a separation, or a de-merger.
Secondly, it is not one insurance company involved, but two.... and a third one joining the game.
The insurance companies in question are CFC Life and Heritage. These have been subsidiaries of CFC Bank since the early /mid 1990s.
The deal that has been on the table for about a year now is to form a new company called CFC Insurance Holdings and to transfer all the shares held by CFC Stanbic in the two insurance companies to this new CFC-IH.
To compensate the shareholders of CFC Stanbic, they will be issued with one share of CFC-IH for every one of CFCStanbic owned.
the plan was approved by CFC Stanbic shareholders at the EGM held on 9th August.
In the end, CFC Stanbic will no longer own CFC LIfe and Heritage Insurance. These will now belong to CFC-IH which will be owned directly by the current shareholders of CFC Stanbic....and Liberty Life of SA who will buy their shares by injecting capital into CFC-IH.
If your portfolio planner can't explain it; fire her and get yourself a new one!!!!
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.